Question

Problem 12

Recall Tanner, who wants to allocate his time in studying for assignment in his survival skills class. There are two assignments in the class, and Prof. Pear Grylls will use the minimum of two assignment scores for the final grade. Tanner has 1200 minutes to study for both assignments. Tanner knows that he will get zero, if he doesn’t study at all for the first assignment, and he will get zero, if he doesn’t study at all for the second assignment. He knows that every 10 minutes spent of studying for the first assignment will bump his grade on the first assignment by 1 point.

He also knows that every 20 minutes spent of studying for the second assignment will bump his grade on the second assignment by 1 point.

1. On the graph, draw Tanner’s "budget line" showing various combinations of scores on assignment 1 and assignment 2 that he can achieve with 1200 minutes of studying.

On the same graph, draw two indifference curves.

2. Draw a straight line that goes through the kinks in Tanner’s indifference curves, write its equation: _______ . Label the point where this line crosses Tanner’s budget constraint with A.
3. Draw Tanner’s indifference curve through A.
4. Write an equation for Tanner’s budget line.
5. Solve equations in (c) and (e) to determine the intersection of these lines. What is the

intersection point x₁,x₂?

6. Given that Tanner has 1200 minutes to study, Tanner will maximize his final grade by spending how many minutes on studying for each assignment?

Use problem 6 as reference (one about Tanner's 2 midterms, question is answered on Chegg)

Answer 1